euro vs. dollar

Euro vs. Dollar 28 July 2010

The euro vs dollar continues to struggle to clear the USD1.30 price region with yesterday’s narrow spread doji clearly indicating the weakness of the market at present.  Yesterday’s high managed to touch USD1.3046 only to close below the UD1.30 level once again, and indeed in this morning’s early trading we are seeing an identical technical picture develop.  Should today’s price action continue the pattern of the past two weeks then this adds increasingly likelihood to a sharp sell off in due course as the recovery loses both momentum and strength.  Whilst the price action continues above all three short term moving averages there is always a chance that the currency pair may push higher in the short term but the longer it remains struggling at this level then the greater the chance of a reversal and return to the longer term bearish trend which still remains firmly established.  Once the price moves below the 9 and 14 moving averages then this will signal the start of this reversal.

This week’s fundamental news for the euro vs dollar is covered on the main forex trading site.

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Weak US growth bodes ill for dollar